Solaris
Senior Member
eeeks 
.... what will this mean to TO's housing market ??
********
TSX down more than 800 points
September 29, 2008
Kristine Owram
THE CANADIAN PRESS
The Toronto stock market plummeted more than 800 points in early afternoon trading Monday amid sharply lower crude prices and uncertainty over a US$700-billion bailout plan for Wall Street.
Markets in New York also fell sharply as investors awaited a vote on unpopular the plan for the U.S. government to rescue troubled financial institutions and reacted to news that Citigroup will acquire Wachovia, the latest financial services company to succumb to mounting losses tied to toxic assets.
Toronto's S&P/TSX index was down 501.74 points to 11,624.26 amid lower oil prices and falling metals stocks, after losing more than 400 points Friday.
The TSX Venture Exchange fell 80.2 points to 1,435.44.
The Canadian dollar was down 0.52 cent to 96.3 cents US.
New York's Dow Jones industrial average lost 271.6 points to 10,871.53. The Nasdaq composite index fell 94.8 points to 2,088.54 and the S&P 500 lost 45.46 to 1,167.55.
Joe Ismail, a technical analyst at Maison Placements Canada, said lower crude prices were primarily to blame for the plummeting TSX, but he expects a "reversal in the next day or two" after the U.S. government bailout package is passed.
"We seem to be getting close to the final capitulation day, so I wouldn't be surprised to see the market ticking up," he said.
"After the decision comes up, the market will stabilize and move forward."
President George W. Bush and congressional leaders were working to bolster support for the bailout, presenting it to angry voters as a difficult but necessary measure to revive seized-up credit markets.
Bush said he was confident the rescue bill agreed to during the weekend would be passed quickly and will help stabilize the economy.
But BMO Capital Markets economist Sal Guatieri said the plan is ``unlikely to cure" the credit crisis.
"While the plan reduces the risk of a worst-case outcome for financial markets and the economy, it won't prevent a recession (which the economy is likely already in) and is unlikely to spur a fast recovery," Guatieri said in a note to clients.
"The credit crisis will persist until house prices stop falling, and given the massive overhang on the market, that could take until early next year."
Banks and other financial houses are hesitant to lend – even to each other – because of fears about bad debts.
Demand for safe-haven government debt remained high. The yield on the three-month U.S. Treasury bill fell to 0.68 per cent from 0.87 per cent late Friday. The tiny yield on the safest short-term investment shows investors are accepting a negligible return in exchange for security.
Investors appeared to find little reassurance in a move by the U.S. Federal Reserve, the Bank of Canada and other central bank to pump money into the world's credit markets.
The Bank of Canada said Monday that it and the Federal Reserve have agreed to expand their reciprocal currency arrangement to US$30 billion, up from the US$10 billion announced Sept. 18.
Investors also digested news that U.S. consumer spending in August fell to its lowest level in six months. The Commerce Department said consumer spending was unchanged on the month, rather than increasing 0.2 per cent as economists had expected.
And Scotiabank economists said Monday the prices of Canada's commodity exports tumbled 8.9 per cent last month after seven consecutive record highs, and are continuing to slide.
The news from the U.S. sent the Toronto financial sector down 2.2 per cent.
Royal Bank (TSX: RY), TD Bank (TSX: TD) and Bank of Montreal (TSX: BMO) have been cited as possible shoppers for assets amidst the turmoil that has engulfed U.S. banks.
Royal shares were down $1.27 cents to $49.65, while BMO lost $1.43 to $44.87.
The TSX energy sector slid 7.4 per cent as the November crude contract in New York declined $7.90 to US$98.99 a barrel.
Energy heavyweight EnCana (TSX: ECA) was down $4.43 to $66.79 while Suncor (TSX: SU) lost $3.83 to $42.72.
The metals sector plunged 8.5 per cent as Teck Cominco (TSX: TCK.B) gave up $4.40, or more than 13 per cent of its value, to $29.17 even as it announced it has secured financing for its $14-billion takeover of Fording Canadian Coal Trust (TSX: FDG.UN).
The gold sector gave up 1.6 per cent even as the December bullion contract on the New York Mercantile Exchange rose $10.50 to US$899 per ounce.
European stock markets tumbled as Dutch-Belgian banking and insurance operator Fortis NV got an 11.2-billion-euro bailout from the governments of Belgium, the Netherlands and Luxembourg. Meanwhile, the British government announced it's nationalizing troubled mortgage lender Bradford & Bingley.
The FTSE 100 index closed down per 5.3 per cent in London, while the German DAX fell 4.2 per cent and the French CAC 40 surrendered five per cent.
.... what will this mean to TO's housing market ??********
TSX down more than 800 points
September 29, 2008
Kristine Owram
THE CANADIAN PRESS
The Toronto stock market plummeted more than 800 points in early afternoon trading Monday amid sharply lower crude prices and uncertainty over a US$700-billion bailout plan for Wall Street.
Markets in New York also fell sharply as investors awaited a vote on unpopular the plan for the U.S. government to rescue troubled financial institutions and reacted to news that Citigroup will acquire Wachovia, the latest financial services company to succumb to mounting losses tied to toxic assets.
Toronto's S&P/TSX index was down 501.74 points to 11,624.26 amid lower oil prices and falling metals stocks, after losing more than 400 points Friday.
The TSX Venture Exchange fell 80.2 points to 1,435.44.
The Canadian dollar was down 0.52 cent to 96.3 cents US.
New York's Dow Jones industrial average lost 271.6 points to 10,871.53. The Nasdaq composite index fell 94.8 points to 2,088.54 and the S&P 500 lost 45.46 to 1,167.55.
Joe Ismail, a technical analyst at Maison Placements Canada, said lower crude prices were primarily to blame for the plummeting TSX, but he expects a "reversal in the next day or two" after the U.S. government bailout package is passed.
"We seem to be getting close to the final capitulation day, so I wouldn't be surprised to see the market ticking up," he said.
"After the decision comes up, the market will stabilize and move forward."
President George W. Bush and congressional leaders were working to bolster support for the bailout, presenting it to angry voters as a difficult but necessary measure to revive seized-up credit markets.
Bush said he was confident the rescue bill agreed to during the weekend would be passed quickly and will help stabilize the economy.
But BMO Capital Markets economist Sal Guatieri said the plan is ``unlikely to cure" the credit crisis.
"While the plan reduces the risk of a worst-case outcome for financial markets and the economy, it won't prevent a recession (which the economy is likely already in) and is unlikely to spur a fast recovery," Guatieri said in a note to clients.
"The credit crisis will persist until house prices stop falling, and given the massive overhang on the market, that could take until early next year."
Banks and other financial houses are hesitant to lend – even to each other – because of fears about bad debts.
Demand for safe-haven government debt remained high. The yield on the three-month U.S. Treasury bill fell to 0.68 per cent from 0.87 per cent late Friday. The tiny yield on the safest short-term investment shows investors are accepting a negligible return in exchange for security.
Investors appeared to find little reassurance in a move by the U.S. Federal Reserve, the Bank of Canada and other central bank to pump money into the world's credit markets.
The Bank of Canada said Monday that it and the Federal Reserve have agreed to expand their reciprocal currency arrangement to US$30 billion, up from the US$10 billion announced Sept. 18.
Investors also digested news that U.S. consumer spending in August fell to its lowest level in six months. The Commerce Department said consumer spending was unchanged on the month, rather than increasing 0.2 per cent as economists had expected.
And Scotiabank economists said Monday the prices of Canada's commodity exports tumbled 8.9 per cent last month after seven consecutive record highs, and are continuing to slide.
The news from the U.S. sent the Toronto financial sector down 2.2 per cent.
Royal Bank (TSX: RY), TD Bank (TSX: TD) and Bank of Montreal (TSX: BMO) have been cited as possible shoppers for assets amidst the turmoil that has engulfed U.S. banks.
Royal shares were down $1.27 cents to $49.65, while BMO lost $1.43 to $44.87.
The TSX energy sector slid 7.4 per cent as the November crude contract in New York declined $7.90 to US$98.99 a barrel.
Energy heavyweight EnCana (TSX: ECA) was down $4.43 to $66.79 while Suncor (TSX: SU) lost $3.83 to $42.72.
The metals sector plunged 8.5 per cent as Teck Cominco (TSX: TCK.B) gave up $4.40, or more than 13 per cent of its value, to $29.17 even as it announced it has secured financing for its $14-billion takeover of Fording Canadian Coal Trust (TSX: FDG.UN).
The gold sector gave up 1.6 per cent even as the December bullion contract on the New York Mercantile Exchange rose $10.50 to US$899 per ounce.
European stock markets tumbled as Dutch-Belgian banking and insurance operator Fortis NV got an 11.2-billion-euro bailout from the governments of Belgium, the Netherlands and Luxembourg. Meanwhile, the British government announced it's nationalizing troubled mortgage lender Bradford & Bingley.
The FTSE 100 index closed down per 5.3 per cent in London, while the German DAX fell 4.2 per cent and the French CAC 40 surrendered five per cent.
